What is the real strategy of AMC?

I always believed they were the minnow who were planning to mine a massive Nickel reserve in Russia but after the recent presentation and RY comments I now see it very different. The phrase” best return to shareholders” is a common statement from CEO’s presentations as they want you to believe they are actually working for you and to get you the best return on your money. So how will AMC achieve this? By mining the stuff, I don’t think so. They are building a package to sell to the highest bidder. This will be triggered once the license is granted and in the mean time they must re validate the NPV to get the best negotiating power possible to get the best dear.




If they get the license the stock price will jump and probably re trace 20% from the high point in the first day. This will probably be the time most PI’s will jump off to get there cash after such a long time looking at a loss over the last year. I don’t think they will buy back in as they will be happy with their lot. But is this the best way to get the most out of AMC? The question I would like to ask is Will it be more beneficial to hold to the bitter end? Whatever that may be!



If it is a takeover / buyout could this be the best price for shareholders, alternatively they may just mine the stuff and dividend could be the achieved after a few years. (That would make a nice pension) So what answers that first statement” best return to shareholders”? I am not totally sure but these are the questions that are in my head.


Nickel is now at $10 per 1 lb, this puts $200 on the NPV with the Gurney reserve and the road cut, I estimate another 30 tons putting another 150m on the NPV.

There are other NPV uplift opportunities but first I will leave that out.

So $84 +$200 + $150 gives a very rough NPV of $434m divided down this is 210m shares @ $2.06. 1.29 pounds GBP per share.

There is also smelting savings Tax savings and increased grade % that could put another 200+ on the NPV adding another $1 to the total giving $3.06 per share.

This puts the share price at 1.91 pounds. Now if RY was looking for a takeover price I think he would be laying these figures on the table at the board meetings and saying what are we prepared to accept?. But this is all hot wind without the license. This is probably why he has knocked back any takeover offers as he will wait for the time when they really have something to sell.

So chaps do you jump on the announcement of the license or hold for a takeover. I am sure there would be a lot of PI’s out there who would be a little frustrated if they sold out for 40p and a takeover bid was much much more just a few weeks later.

This is just food for thought.